LD 371
pg. 1
LD 371 Title Page An Act To Require Review of Utility Rates Prior to Approval of Alternative Rate... Page 2 of 2
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LR 1310
Item 1

 
Be it enacted by the People of the State of Maine as follows:

 
Sec. 1. 35-A MRSA §3195, sub-§2, as amended by PL 1999, c. 398, Pt.
A, §71 and affected by §§104 and 105, is further amended to
read:

 
2. Just and reasonable rates. In determining the
reasonableness of any rate-adjustment mechanism established
under this subchapter, the commission shall apply the
standards of section 301 to ensure that the rates resulting
from the implementation of the mechanism are just and
reasonable. Prior to the adoption of a new or replacement
alternative rate plan or renewal of any existing alternative
rate plan, the commission shall, in order to ensure that rates
at the starting point of the plan are just and reasonable,
conduct a revenue requirement and earnings review pursuant to
the standards of section 301.

 
Sec. 2. 35-A MRSA §4706, sub-§§3 and 6, as enacted by PL 1997, c. 707,
§10, are amended to read:

 
3. Just and reasonable rates. In determining the
reasonableness of any rate-adjustment mechanism established
under this subchapter, the commission shall apply the
standards of section 301 to ensure that the rates resulting
from the implementation of a rate-adjustment mechanism are
just and reasonable. Prior to the adoption of a new or
replacement alternative rate plan or renewal of any existing
alternative rate plan, the commission shall, in order to
ensure that rates at the starting point of the plan are just
and reasonable, conduct a revenue requirement and earnings
review pursuant to the standards of section 301.

 
6. Amendment to multiyear rate plans. The commission may
not amend or prematurely terminate the terms of a multiyear
rate plan in a manner that prevents or threatens the utility's
opportunity to recover a reasonable rate of return over the
entire term of the plan. The commission shall ensure
compliance with the requirements of this subsection in the
revenue requirement proceeding and earnings review required by
subsection 3.

 
Sec. 3. 35-A MRSA §9103, sub-§§5 and 6, as enacted by PL 1993, c. 638,
§2, are amended to read:

 
5. Reasonable charges. The alternative form of regulation
must ensure that customers pay only reasonable charges for
local telephone services. Prior to the adoption of a new or
replacement alternative rate plan or renewal of any existing
alternative form of regulation, in order to ensure that rates
at the starting point of the plan are just and reasonable, the


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